JK Tyre & Industries on Thursday reported a consolidated net loss of Rs 204.17 crore in the first quarter ended June 30, hit by lower sales due to coronavirus pandemic. The company had posted a net profit of Rs 16.12 crore in April-June period of previous fiscal.
Net sales declined to Rs 1,138.14 crore in the first quarter as compared with Rs 2,581.47 crore in the year-ago period, JK Tyre said in a statement.
"Economic activity, which came to a halt towards the end of the last quarter, started slowly in mid-May. Our preparedness to meet replacement demand paid off well," JK Tyre Chairman and Managing Director Raghupati Singhania said.
As the lockdown was progressively eased, the company was able to cater to market demand, especially in the commercial segment, he added.
"In fact, the company has achieved the highest ever sales in the replacement market for its domestic operations in June, which resulted in a growth of around 3 per cent on year-on-year basis," Singhania said.
Original equipment manufacturers' (OEMs) volumes are still reeling from the impact of COVID-19, resulting in sluggish vehicle manufacturing, he added.
Singhania said there was tremendous focus on conserving cash and aggressive cost savings during the quarter.
"We would be able to sustain a good portion of these cost savings on an ongoing basis," he added.
Commenting on international operations, he said COVID-19 pandemic conditions in Mexico were far more severe.
"Though plants started operating from early June, the overall demand continues to be subdued," he noted.
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